Federal Government uses UPLAN model to examine price volatility in ERCOT

LCG, October 11, 2022--The U.S. Energy Information Administration, or EIA, released its latest supplement to the Short-Term Energy Outlook (STEO) in the Texas market, assessing various possible scenarios using LCG’s UPLAN NPM model, with a special focus on the effects on wholesale power prices and market conditions.

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Michigan Governor Supports Reopening Palisades Nuclear Facility

LCG, September 16, 2022--The Governor of Michigan last week sent a letter to the U.S. Department of Energy (DOE) in support of Holtec International’s application for a federal grant under the Civil Nuclear Credit (CNC) program to save the Palisades Nuclear Facility in Southwest Michigan. The federal grant could result in restarting the baseload, carbon-free, nuclear power plant.

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Industry News

Panel Recommends 'Solutions' to Enron's India Problem

LCG, Oct. 1, 2001--A panel set up by the Indian state of Maharashtra has suggested the federal government be willing to spend almost 57 billion rupees ($1.19 billion U.S.) to help save Enron Corp's. Dabhol power project, which has been idle since June, the Business Standard daily paper said today.

The recommendations would cost Dabhol Power Co's. U.S. owners more in cash than it would the Indian government.

The committee was set up earlier this year to review all aspects of the bitter and long-running dispute between Enron, the state of Maharashtra, the Maharashtra State Electricity Board and the Indian central government.

When the MSEB -- Dabhol's only customer -- ceased power purchases earlier this year, the company shut down production at the 740 megawatt First Phase of the 2,184 megawatt power plant and Enron ceased construction on the Second Phase, which was 97 percent complete.

Since Dabhol first began producing power, Enron has been locked in a messy dispute with the MSEB over getting paid, and for several months running was forced to invoke a guarantee by Maharashtra state and a counter-guarantee by the Indian federal government.

Tiring of the brouhaha, Enron said in July that it wants to exit India and would be willing to sell its 65 percent interest in Dabhol for what it has in it. Two other owners, General Electric Co. and Bechtel Enterprises with 10 percent each, indicated they were of similar mind. The MSEB owns the remaining 15 percent.

The Maharashtra panel has recommended that Enron, GE and Bechtel together absorb a loss of 28.35 billion rupees ($590 million), apparently out of the goodness of their hearts, in order that the tariff on Dabhol's power might be reduced to a figure the MSEB considers palatable.

The contribution of the Indian federal government would include 25 billion rupees ($521 million) in cash, waiving customs duties on the import of liquefied natural gas (used to fuel the plant) and cutting import duties on capital goods, the report said.

For its part, Enron wants as little to do with the MSEB, the state of Maharashtra, the Maharashtra electricity regulators and now the Maharashtra review committee as possible. The U.S. company has asked the International Court of Arbitration in London to settle the matter, as provided for in its contracts with India and the state of Maharashtra.

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